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Investment Views (July 10th 2000)

Markets in General

The markets remain extremely nervous and tentative. It's still up- a -100- points
down- a- 100- points-the- next -day kind of action. The volume is quite thin and
no group stands out as clear leaders. Friday the Nasdaq closed above the 4000
level for the first time in a long time. We're still convinced that the Nasdaq
could recover to the old highs, once the summer rally gets going. But at the
moment it is still unclear whether that is the case. The upside on the Dow will
be more limited. But 11000 is still possible.

European markets have been in a doldrom since April. The tech-heavy
Neue Markt is still correcting massively. There are just no volume and
no enthusiasm at the moment, although the European economies are
growing nicely without any noticeable inflationary pressures. France is
outperforming Germany just as the stock market had predicted.

The Swiss Market correction is over. The market closed on Friday
solidly above 7700 again. We expect better markets during the next
few weeks. First target is still 8000.

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Stocks

Our favorite stocks remains SAP, Nokia, Ericcson, Cable and Wireless.

High of the Year	Low of the Year	Price and year of recommend.	Performance since recommend.	Stock	Last Week's Close	Daily high	Daily low	This Week's Close
7989.80	6968			SMI	7761.50	7925.30	7871.50	7903.70
E 90	50	53.5 (2000)	+48.41%	AT&S	80	80	79	79.40
SFr. 4000	2475	1351(1998)	+180.90%	Bachem	3460	3840	3730	3795
		260 (2000)	+5.38%	Biodata	340	300	250	274
Gbp 15.77	8.28	4.9(1998)	+151.02%	C&W	11.09	12.35	11.76	12.30
E 368.90	210.10	140(1998)	+35.21%	Cap Gemini	184.50	191	183	189.30
SFr.44.25	21.5	10(1998)	+252.5%	Ericsson	32.70	35.70	34.30	35.25
E190	66.40	129 (2000)	-18.2%	Epcos	104.29	111	105..70	108.50
E.199	E.32	28 (1999)	+220.71%	Evotec	94	91.50	88.88	89.80
E 97	70.25	37.8(1998)	+133.33%	LVMH	86.38	89.80	85.05	88.20
Sfr.275	133	60(1999)	+200%	New Ventur	182	185	178.25	180
E.64.90	37.50	7.50(1997)	+642.66%	Nokia	53.45	57.50	55.11	55.70
SFR.19400	17600	SFr.16900** (2000)	-.06%	Roche GS	15880	17060	16755	16890
SFr.456.33		46.66(1997)	+442.99%	SAP	244	249.50	237	244.50
E 96	54	17.7(1999)	+180.22%	Sonera	47.75	49.50	46.80	49.60
SFr.850	660	460(1998)	+80.65%	Syn-Stratec	744	850	820	831
SFr1050	661	703(2000)	+39.4%	Think Tools	945	986	980	980
E 73.30	16	14.9(1999)	+322.82%	Zeltia	63	63.50	62	63

*We decided to calculate the performance since recommendation, because we have recommended the different stocks
to buy at different times. Since we're convinced that one should be long term investors, we think the performance
since recommendation is a better reflection of our goals. **adjusted for Givaudan spinoff.

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Currencies and Bonds

A few weeks ago we wrote:

The dollar has remained strong against the Euro, even during the stock market turmoil.
While the US trade deficit got worse, but dollar moved up against the Euro instead of
falling. Thus we have an unbroken upwards trend for the dollar. The interest rates
differentials are still positive and the shrinking federal deficit another positive factor.
We remain cautiously optimistic on the dollar. But Euro should have good support around
the .90 level. Soro's managers had obviously suffered huge losses betting on the Euros. So
the Euro weakness could have been exacerbated by hedge funds' liquidation.
So the watershed event on the Euro might have taken place already.

The Euro has fallen below the . 90 level again and again. We have the Euro closing the
day below .90. But we kept on getting rebounds back above the .90 level. All the
analysts on CNBC have become Euro-pessimists and expect a very weak summer
for the Euro. Maybe the Euro has bottomed.

I think we were correct in calling a Euro bottom. Since our call, the Euro has recovered
above the .95 level. We remain convinced that the "correct" level of the Euro should
be 1-1: that the longer term trend of the Euro should be up and not down. Trade deficits
and current account deficits are all indications for how strong an economy is. In the
long term the market exchange rates will reflect such fundamental trends.

The dollar has also declined against the Swiss Francs. SFr. 1.60 is critical. If that level
should break, we should see further dollar weakness.

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Future Trends

Investors seem to be cooling towards the idea of the 3rd generation wireless
telephones. But it is a technology that is coming to the market within the
next couple of years. So why is the stocks of Qualcomm down so much
and that of Ericsson and Nokia are going nowhere? The problem seems to
be the high 3rd generation licence fees that countries in Europe are demanding
from the telecom companies. People seem to think that the sky-high
cost could delay the implementation and that telecom companies
might be tempted to only build the 3rd generation systems in areas
where the telephone charges will be able to cover costs. Therefore
the capacities build might be much smaller than anticipated. On the
other hand people should take into consideration that the telecom
companies might be very anxious to get their systems going as soon as
possible, because the licence fees are so high. They will need the
income stream generated by the new systems as soon as possible.
Plus companies like Qualcomm and Ericcson will only stand to
profit from the building and converting the present telephony system
to the new standards. The question will be how much and how soon and not
if at all. We recommend buying these stocks on weakness.

*The stock prices are provided for informational purposes only and not intended for trading purposes. The opinions expressed in these pages are what they are: opinions!